| Summary: | This study examines the demand for Indonesia�s rattan in Germany from
1991-2008 by using Transcendental Logarithmic as a tool. Germany is chosen since
it is the potential market of rattan, especially in Europe and it can be considered as a
competitive market. The results revealed that the nominal expenditure affects
negatively to share of China�s rattan demand, while the others are influenced
positively. In term of own-price, China�s, Singapore�s and Indonesia�s rattan are
inelastic goods in which Indonesia�s rattan has the lowest value or close to zero. It
implies that Indonesia�s rattan close to perfectly inelastic, while cross price elasticity
shows that Malaysia�s rattan is complement goods of Indonesia�s rattan. Based on
our policy analysis, the export of rattan raw materials is still giving economic profit
for Indonesia.
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